He is the person who sends his ideas to another person. For example, if a manager wants to inform his subordinates about the introduction of a new product, he is the sender.

2. Message:

The idea, feeling, suggestion, guidelines, orders or any content which is intended to be communicated is message. For example, message is the introduction of new product.

3. Encoding:

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It is the process of converting the idea, thinking or any other component of message into symbols, words, actions, diagram etc. For example, message is connected in words and actions.

4. Media:

It is the medium, passage or route through which encoded message is passed by the sender to the receiver. There can be various forms of media-face to face communication, letters, radio, television, e-mail etc. For example manager inform about the introduction of a new product in a meeting through presentation.

5. Decoding:

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It means translating the encoded message into language understandable by the receiver.

6. Receiver:

He is the person to whom the message has been sent. For example, subordinates are receivers.

7. Feedback:

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It is the response by the receiver. It marks the completion of the communication process.

8. Noise:

It is the hindrance in the process of communication. It can take place at any step in the entire process. It reduces the accuracy of communication e.g. 1) Disturbance in the telephone lines, 2) An inattentive receiver 3) Improper Decoding of Message etc.

Communication process consists of following steps:

(i) The sender formulates the message that he wants to convey to the receiver.

(ii) He encodes or translates his message. He may take the help of symbols, words, actions, diagrams, pictures etc.

(iii) He selects an appropriate channel or medium through which the message is to be transmitted. It can be face to face communication, letters, radio, television, e-mail etc.

(iv) The message is received by the receiver.

(v) Received message is decoded by the receiver so that the receiver can draw the meaning of the message.

(vi) The receiver sends his response to the sender. In case of any confusion, the same is conveyed and necessary clarification sought.

Importance of Communication:

Communication is to the organization as blood is to the body. The success of all the functions of management depends upon the effective communication.

Significance of communication can be understood from the following points:

1. Acts as Basis of Coordination:

Communication helps in coordinating the activities of various departments and persons in an organisation by providing complete information about organisational goals, ways of achieving them, interpersonal relationship among persons etc. Hence, communication acts as basis for coordination.

2. Helps in Smooth Working of an Enterprise:

Communication ensures smooth functioning of an enterprise. Existence of an organisation depends fully on communication. The activities of an organisation shall come to a standstill if communication stops.

3. Acts as Basis of Decision Making:

Communication helps in the process of decision making by providing all the necessary information. In the absence of communication of relevant information, one cannot take any meaningful decision.

4. Increases Managerial Efficiency:

The various functions of the manager involve:

(a) Providing information regarding the goals and objectives of an enterprise.

(b) Providing instructions

(c) Allocating jobs and responsibilities

(d) Overseeing the work of the workers.

All these functions involve communication. Thus, communication is essential for effective performance of managerial functions.

5. Promotes Cooperation and Industrial Peace:

To ensure smooth and efficient functioning of an organisation is the main aim of the management. This is possible only when there is peace and harmony between the management and the workers. The two way communication helps in establishing same.

6. Establishes Effective Leadership:

A good leader must possess efficient communication skills for influencing the behaviour of the subordinates. Thus, communication is the basis of leadership.

7. Boosts Morale and Provides Motivation:

An efficient communication system helps in motivating, inspiring and satisfying the subordinates. Moreover, it also helps in establishing participative and democratic type of management.